Financing Furniture: What You need to Know Before You Buy!

 

What Does Financing Really Mean?

• Financing furniture means you're borrowing money to pay for it over time- usually through store credit, a credit card, or a special loan. Instead of paying the full price upfront, you make monthly payments, often with interest if you don't pay it off in time. 
• And if you miss payments? Late fees and penalty interest can make that comfy couch feel a lot less cozy.

How Does Financing Furniture Affect Buying a Home?

• Your Furniture payments can impact your credit score-too much credit debt or missed payment can lower your score, making it harder or more expensive to get approved for a mortgage loan.
• your debt-to-income ratio-Lenders want to see that you have enough income left over after paying your debts each month. A big furniture payment could push over the limit.
• When you apply for a mortgage, lenders look very closely at your finances---not just your income, but also your existing debt, and how you manage them.
• Lenders do a final credit check before closing--lender do a "final" soft credit check right before closing.

 

 

  If  they see you opened new credit--like a furniture loan, it can pause or cancel your closing, because your financial profile changed and now they have to make sure you still qualify under the same terms.

In other words, that perfect sofa today could delay your dream home tomorrow if you are not careful.   

    Here Are Some Tips to Finance Smart:

1. Know your budget-Before you step into the store, decide what you can spend and stick to it.
2. Understand the terms- Read the fine prints- is there interest rate? When does it start? How long do you have to pay if off?
3. Pay on Time, every time--Late payments means extra fees, and credit score drops. Set reminders or automatic payments if you need to.
4. Consider Saving Instead-Can you wait and save up instead of financing? Cash is king--annd debt free sleep is priceless.

At, Plymouth Furniture, we want you to love your furniture-- not lose sleep over the payments. Our Team can walk you through your options, explain the details, and help you find pieces that fit your styles and your budget. 

Come Visit us, ask questions, and let's make your dream home and dream furniture a reality--the smart way.